The us Network to combat financial crimes (FinCEN) issued a brief report on how Iran tries to circumvent sanctions, including through cryptocurrency, Crypto Globe writes.
Although FinCEN recognizes that the cryptocurrency circulation in Iran is relatively small, the examiners concluded that since 2013 in the country annually committed a bitcoin transaction in the amount of approximately $3.8 million, the Regulator is confident that crypto-currencies can become for Iranian organizations and citizens a means to circumvent the sanctions.
FinCEN requests the institutions associated with cryptocurrencies to pay attention to the blockchain registries to track Iran-related activity. The network warns that “the new business of virtual currencies may arise in Iran or already operate there, while remaining almost unnoticed”.
According to FinCEN, the Iranian citizens and companies still have access to the cryptocurrency through a series of exchanges, although the Central Bank of Iran has banned local financial institutions to work with digital assets.
The regulator reminds financial institutions and exchange that they must be ready to comply with sanctions requirements and the law on combating money laundering.
The report’s authors also urge FinCEN structure of the financial sector to pay attention to certain signals that may indicate attempts of the Iranian regime to use the cryptocurrency to their advantage. In particular, institutions (including cryptocurrency exchanges) is recommended to fix the logon Iranian structures, particularly in the case of transfer of cryptocurrency. FinCEN experts explain that details such as IP addresses and timestamps, can serve as important evidence for law enforcement. The regulator for its part, promises to track “unexplained” funds to cryptocurrency exchanges and their conclusion.
Economic sanctions are associated with developing Iran’s missile and nuclear programs, which the authorities do not intend to refuse, which causes concern of the world community and the United States. The European Union aims to protect companies of the participating countries from the influence of us sanctions.
One of the possible protective measures can be used in international settlements the new cryptocurrency Iran, which would allow to conduct business without causing a reaction from the United States. Nevertheless, the US presidential Advisor Donald trump on national security John Bolton has previously warned the European Union that the White house will make every effort to prevent circumvention by the EU us sanctions against Iran.